Massachusetts General Laws ch. 156B sec. 60 – Improper stock issue; liability of directors
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Section 60. If stock of a corporation is issued for a consideration which does not comply with the requirements of sections eighteen or twenty-one, the directors who voted to authorize such issuance and the president and the treasurer of the corporation shall be jointly and severally liable to any stockholder to the extent of the actual damage sustained by such stockholder by reason of such issuance. Nothing in this section shall limit any liability imposed on such director or officer in respect of stock issued in contravention of any provision of the articles of organization.
Terms Used In Massachusetts General Laws ch. 156B sec. 60
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.